Advanced Micro Devices Inc. Strong sales in data and gaming centers are expected to maintain strong sales until 2021, after the chip maker exceeded $ 3 billion in quarterly revenue for the first time late Tuesday and its results and outlook exceeded Wall Street estimates.
AMD AMD,
reported fourth quarter net income of $ 1.78 billion or $ 1.45 per share, compared to $ 170 million or 15 cents per share in the previous year.
After adjusting for a $ 1.3 billion tax assessment allowance due to strong results and other factors, the chip company reported earnings of 52 cents per share, compared to 32 cents per share so far one year. Revenue rose to $ 3.24 billion from $ 2.13 billion last quarter.
Analysts surveyed by FactSet forecast adjusted earnings of 47 cents per share on revenue of $ 3.03 billion.
AMD reported fourth-quarter sales of $ 1.96 billion in computing and graphics chips, up 18% from $ 1.66 billion last year, compared to analysts’ expectations of $ 1.8 billion. Sales of embedded and semi-custom tokens – the unit that includes revenue from data centers and game consoles – were $ 1.28 billion, up 176 percent from $ 465 million a year ago. compared to analysts’ average forecast of $ 1.24 billion.
AMD President and CEO Lisa Su said in the conference call that gaming products have gained momentum since the launch of MSFT Microsoft Corp. last quarter.
Sony Corp.’s new line of Xbox and SNE consoles,
PlayStation 5.
“Semi-custom [system on a chip] sales are growing faster than the last console cycle and we expect sales to be better than the typical season in the first half of this year, based on current strong demand, ”Su said on appeal.
Regarding the server, Su said that sales in the cloud and enterprises remained strong.
“Google GOOG,
GOOGL,
Microsoft, Tencent 700,
and others continue to expand their use of Epyc processors to power larger portions of their internal critical infrastructure, and the number of AMD-powered cloud instances is expanding, ”Su said.
The company expects first-quarter revenue to be between $ 3.1 billion and $ 3.3 billion, and revenue in 2021 to grow by about 37 percent, or about $ 13.37 billion.
Analysts expect revenue of $ 2.72 billion in the first quarter, and revenue of $ 12.26 billion in 2021.
Su also said that AMD has “passed several important regulatory steps so far” regarding the acquisition of Xilinx Inc. XLNX,
and that the agreement remains to be concluded by the end of 2021.
AMD shares, which rose up 3% after hours, fell less than 1% in extended trading, after rising 0.6% in the regular session to close at $ 94.71.
In the last 12 months, AMD shares have gained 88%. In comparison, PHLX Semiconductor SOX Index,
the S&P 500 SPX index rose 58% during this time,
gained 17%, and the Nasdaq COMP composite index
increased by 46%.